Illustrative Auditor's Reports
· AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits
· Reports Under Government Auditing Standards
o Government Auditing Standards Report Illustrations - SAS No. 112 Terminology
o Government Auditing Standards Report Illustrations - SAS No. 115 Terminology
· Reports Under OMB Circular A-133 - SAS No. 112 Terminology
· U.S Department of Housing and Urban Development
o Internal Control Illustrative Auditor's Reports with Updated SAS No. 112 Terminology
o Illustrative HUD Auditor Report for Separate SAS No. 29 Reporting on a Public Housing Agency (PHA) Financial Data Schedule (FDS)
AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits
The AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits (Guide) presents guidance on the audits of financial statements conducted in accordance with Government Auditing Standards (also referred to as the Yellow Book). It also includes recommendations for the conduct of audits performed in accordance with the Single Audit Act Amendments of 1996 (the Single Audit Act) and Office of Management and Budget Circular A–133, Audits of States, Local Governments, and Non-Profit Organizations (Circular A-133). If you perform audits under either the Yellow Book or Circular A-133, this guide is a key resource that should be in your library. The Guide also includes examples of the various reports that are issued to comply with Government Auditing Standards and Circular A-133. Many of the report examples included on this Web site for your convenience are excerpts from the Guide.
You should also be aware that the Government Auditing Standards and Circular A-133 Audits Guide is updated on an annual basis. The AICPA last updated the Guide for conforming changes as of August 1, 2008. The 2008 edition incorporates audit guidance issued through that date and includes:
- Guidance on planning and performing audits under the July 2007 revision of Government Auditing Standards
- Conforming changes for SAS No. 102,
Defining Professional Requirements
- Guidance on the auditor's responsibilities as found in SAS No. 112, Communicating Internal Control Related Matters Identified in an Audit, and 114, The Auditor's Communication with Those Charged with Governance, including identifying, evaluating and reporting deficiencies in internal control related to both financial reporting and compliance, and the auditor's communication with those charged with governance
- Updated terminology and references to AU sections to be consistent with the AICPA risk assessment standards
- Enhancements to provide additional clarity on certain problem areas noted in the federal study on single audit quality (the PCIE report), primarily in Chapters 7 and 9 relating to the Schedule of Expenditures of Federal Awards and internal control over compliance
Appendix D of the Guide identifies the changes that were made to the 2008 edition of the Guide to incorporate recent changes in standards, requirements, and other guidance. You can purchase a copy of the Guide online or call AICPA Member Services at (888) 777–7077 (product number is 012748).
Illustrative Auditor's Reports Under Government Auditing Standards
Government Auditing Standards Report Illustrations - SAS No. 112 Terminology - This link contains examples of the reports issued under generally accepted auditing standards (GAAS) and Government Auditing Standards in various circumstances. Note that these reports comply with the requirements of SAS No. 112, Communicating Internal Control Related Matters Identified in an Audit, and should be used by auditors that have not early implemented SAS No. 115 (which carries the same title as SAS No. 112). SAS No. 115 supersedes SAS No. 112 and is effective for periods ending on or after December 15, 2009, with earlier implementation permitted. The U.S. Government Accountability Office (GAO) issued interim guidance (see next section) making it permissible for auditors to implement SAS No. 115 on their financial statement audits performed under Government Auditing Standards, but does not require auditors to early implement. If you have implemented SAS No. 115, you should use the report illustrations in the next section. Learn More>>
Government Auditing Standards Report Illustrations -SAS No. 115 Terminology – This link contains examples of the reports issued under GAAS and Government Auditing Standards in various circumstances. Note that these reports should be used by auditors that have implemented SAS No. 115. Updated report illustrations are needed in that SAS No. 115 revised the internal control deficiency definitions in SAS No. 112. GAO issued interim guidance making it permissible for auditors to implement SAS No. 115 on t heir financial statement audits performed under Government Auditing Standards. The guidance can be accessed on the Yellow Book page of the GAO Web site by clicking here. The GAO guidance becomes effective concurrent with the auditors' implementation of SAS No. 115.
Since some firms are early implementing SAS No. 115, the GAQC developed updated Yellow Book report illustrations that reflect the new SAS No. 115 definitions [Examples 4-3 through 4-7] and is making them publicly available on this Web site. These reports have been reviewed by the AICPA auditing standards team and the GAO staff. They will be incorporated as an Appendix in the 2009 Guide to be issued this Fall. Learn More>>
Illustrative Auditor's Reports Under Circular A-133
Illustrative Auditor's Reports Under Circular A-133– This link contains examples of the report on compliance with requirements applicable to each major program and on internal control over compliance issued under OMB Circular A–133 in various circumstances. Note that these reports comply with the requirements of SAS No. 112. See GAQC Alert #93 , for information relating to the impact of the recent issuance of SAS No. 115 on your Circular A-133 reporting. As noted in GAQC Alert #93 , it is not appropriate for auditors to use definitions for reporting on internal control over compliance that may be consistent with the definitions found in SAS No. 115 until such time as Circular A-133 or other regulations or guides are amended to allow usage of new updated definitions. At this time, Circular A-133 and other similar federal regulations or audit guides have not been updated to reflect the new SAS No. 115 internal control definitions for reporting on internal control over compliance. Please watch the GAQC Web site and future Center communications for further updates. Learn More>>
U.S. Department of Housing and Urban Development
The U.S. Department of Housing and Urban Development (HUD) Consolidated Audit Guide (the HUD Guide) issued updated internal control reporting that reflects the requirements of SAS No. 112 for audits performed under the HUD Guide. Those reports have been posted to the portion of the HUD Office of Inspector General Web site that includes the HUD Guide. Click here to access the HUD transmittal relating to the issuance of the illustrations. As noted above, it would not be appropriate for auditors to use definitions for reporting on internal control over compliance that may be consistent with the definitions found in SAS No. 115 in their HUD reports until such time as HUD updates its guidance to allow usage of new updated definitions. The following updated HUD report illustrations are available:
Example B: Independent Auditor's Report On Internal Control (Combined Report Applicable To Internal Control Over Financial Reporting Based On An Audit Of Financial Statements And Internal Control Over Compliance For HUD-Assisted Programs—Significant Deficiencies Were Noted [No Material Weaknesses])
Example B-1: Independent Auditor's Report On Internal Control (Combined Report Applicable To Internal Control Over Financial Reporting Based On An Audit Of Financial Statements And Internal Control Over Compliance For HUD-Assisted Programs—No Material Weaknesses [No Significant Deficiencies Identified])
- Illustrative HUD Auditor Report for Separate SAS No. 29 Reporting on a Public Housing Agency (PHA) Financial Data Schedule (FDS)
During January 2009, HUD issued a follow-up Notice (to a related December Notice) for Public Housing Agencies (PHA) on its Web site titled, Un-Audited Financial Submission Procedure for Public Housing Agencies With Fiscal Year Ends of June 30, 2008 Through March 31, 2009 . The Notice announced the availability of the previously promised Excel tool version of the updated financial data schedule (the FDS tool) and instructions for submitting it. GAQC Alert #104 further describes the most recent HUD guidance, as well as several considerations for auditors that are issuing the SAS No. 29, Reporting on Information Accompanying the Basic Financial Statements in Auditor-Submitted Documents (AICPA, Professional Standards, vol. 1, AU section 551 ), "in relation to" reporting (SAS 29 opinion) on the FDS. This GAQC Alert also includes information on auditor subsequent event considerations and separate SAS No. 29 reporting on the FDS. See GAQC Alert #104 for more information. See also GAQC Alert #96 for additional background information.
Click here to view an illustrative report that can be used to report separately on the FDS for situations where the audit of a PHA's financial statements has already been issued.
Copyright © 2009 by the American Institute of Certified Public Accountants, Inc., New York, New York.